/ PERSONAL FINANCE, DEBT, ECONOMY

Could remote working be the end of the millennial housing crisis as we know it?

With Twitter recently yesterday announcing that their employees will be able to work from home “forever” and other companies likely to follow suit, the remote working phenomenon could radically transform the financial lives of millennials as they trade big city expenses for high salaries with very low expenses in suburbs and rural areas.

Big salary + low expenses = lots of disposable money to build wealth

We all know the pull of big cities, whether it be London, New York or San Fransisco. With a promise of huge salaries and vast career opportunities, millennials looking to establish themselves in promising careers most often means moving to such cities. However, with the recent world events and the revolution in remote working, companies such as Twitter and many others who will likely follow suit are enabling employees to work remotely full-time.

This is huge, because millennials who were traditionally crippled by huge rent payments finally have the option to earn big and spend small by living in other less costly cities and even spend less on commuting, which can rack up huge expenses.

Millennials finally able to afford a house?

Imagine this. A London salary, for the average mid-level marketing professional is around £40,000, which means a take home pay of £2,302.65. In London, this would mostly be spent on rent and commuting, costing around 50% or more or this salary However with remote working and less commuting, this would be more than enough to afford a house in a less expensive part of the country, which could both rebalance the economy whilst solving the housing crisis for millennials!

It turns out that even though the world is currently in turmoil, this could be a turning point for the finances of many who could have the option to finally save more and afford a house comfortably.

“This phenomenon which Millennial Financial Freedom are officially coining as the “The personal office” will see a radical shift in the way we work for generations to come, with homes being the primary place of work and life.”

Enough room for a beautiful home office whilst big cities have to reinvent themselves

With the advent of remote working, coupled with their own homes with more space than cramped big city living, millennials could look to build out their home offices to be a beautiful environment to build their careers.

The personal office

Photo by Huseyn Kamaladdin from Pexels

This phenomenon which we are officially coining as the “The personal office” will see a radical shift in the way we work for generations to come, with homes being the primary place of work and life, meaning that big cities may have to reinvent themselves to be primary places of leisure and tourism, as opposed to work.

These are paradoxically exciting and frightening times, however we will get through this, whilst fundamental parts of the way we live are transformed, potentially forever.

References:

  1. https://blog.twitter.com/en_us/topics/company/2020/keeping-our-employees-and-partners-safe-during-coronavirus.html
  2. https://www.foxtons.co.uk/living-in/london/rentals/